Mirroring the global trend, Abu Dhabi recorded a new high of 29.4 million passengers in 2024, while airports across Saudi Arabia handled over 128 million, marking a 15% year-on-year increase. Meanwhile, Dubai continues to push forward with the expansion of Al Maktoum International Airport, aiming to complete phase one by 2032.

The new terminal will initially accommodate 150 million passengers annually, eventually rising to 260 million. Passenger volumes are going in only one direction, making the need to scale modenr baggage systems a priority.

To help the industry keep pace with this rapid growth and complexity, the International Air Transport Association (IATA) recently unveiled a sweeping 10-year plan to revolutionise baggage handling. Central to this vision is the shift from outdated, teletype-style messaging systems to modern, API-based infrastructure, aiming to increase efficiency, transparency, and scalability across global networks.

 “We’re replacing outdated messaging systems with modern, API-based messaging to improve data quality, reduce costs, boost security, and future-proof operations,” explained Monika Mejstrikova, IATA’s Director of Ground Operations, at the 37th IATA Ground Handling Conference in Nairobi in May.

Unlike legacy formats, APIs allow airlines, airports, and ground handlers to exchange real-time data securely and consistently, enabling faster responses and fewer errors when disruptions occur. IATA estimates the shift could save the industry up to USD 1 billion annually, while providing the digital backbone needed to support rising passenger volumes.

Another priority is baggage tracking. With millions of bags crisscrossing global networks daily, real-time tracking is no longer optional—it’s essential. Airports like Hong Kong International have adopted RFID-enabled bag tags that improve accuracy and efficiency by scanning bags at multiple points. While not offering live GPS-style tracking, these systems significantly reduce the risk of mishandlings.

At Singapore Changi Airport, passengers can use the iChangi app to track their checked baggage through key milestones such as when it’s loaded onto the plane or ready for pickup, due to integration with participating airlines’ baggage systems. This digital tracking has improved the customer experience by reducing uncertainty during transfers and helping staff respond quickly if something goes wrong.

Meanwhile, airports like Dubai International are investing in enhanced baggage handling technologies, exploring systems that not only improve operational efficiency but also promise to give passengers more control and information through mobile platforms.

Airlines are joining the digital push, too. In a shift that began in late 2023, Lufthansa, Virgin Atlantic, Aer Lingus, and Qantas now allow passengers to share their Apple AirTag data directly with airline staff, giving customer service teams real-time visibility into bag locations. The move marks a turning point in baggage handling—blending personal tracking tech with airline systems to enable faster resolutions, reduce mishandlings, and foster a more collaborative approach between passengers and operators

Imagine a family of four flying from London Heathrow to Sydney, transiting through Singapore Changi Airport. In this scenario, each of their checked bags is tagged with a next-generation RFID-enabled tag at Heathrow. As the bags arrive in Singapore, the RFID system instantly logs their presence and routes them toward the appropriate connecting flight.

One of the bags, however, is mistakenly sent toward the wrong terminal due to a misloaded cart.With real-time RFID tracking, the system detects the error immediately. An automated alert notifies ground staff, who intercept the bag and reroute it before it misses the connection. The family never knows there was an issue, and when they land in Sydney, all their luggage is waiting for them.

Behind the scenes, the airport’s mobile app shows live updates like: “Bag scanned at arrival belt,” “Bag in transit to next gate,” “Bag loaded on flight SQ221 to Sydney.” Should anything go wrong, customer service staff have instant access to location data to resolve issues before they escalate.

Scenarios like this may still largely be aspirational, but they’re getting closer to reality and industry bodies are accelerating the shift. According to Mejstrikova, “In 2024, we [IATA] helped 120 airlines build implementation plans for baggage tracking. By end-2025, we aim for 80% of airlines to have plans in place and 30% of networks to be actively using R753. The long-term goal: 100% end-to-end baggage tracking and the elimination of paper tags.”

IATA Resolution 753 (R753) is a key industry regulation that requires airlines to track each piece of baggage at four critical points during its journey: check-in, loading onto the aircraft, transfers between flights, and final arrival to the passenger. This mandate aims to significantly reduce lost and mishandled bags by increasing transparency and accountability throughout the baggage handling process.

By ensuring real-time tracking at these stages, R753 supports the broader push toward digitalisation in the aviation industry, improving operational efficiency and passenger experience. Achieving 100% end-to-end baggage tracking and eliminating paper tags will be crucial because it ensures complete visibility and accountability for every bag throughout its journey, drastically reducing mishandling and enhancing the overall passenger experience

When things do go wrong, however, passengers expect quick, transparent resolutions. It is worth noting that since 2007, the number of mishandled bags has dropped by 63%, according to SITA’s Baggage IT Insights 2024. This long-term decline comes despite a dramatic rise in global air passenger volumes. It shows that ongoing investment in smart baggage systems is already paying off, but with passenger numbers climbing, standing still isn’t an option

That’s where the next wave of innovation—AI, predictive analytics, and robotics—comes into play. One of the most promising tools is auto-reflighting, which automatically reroutes mishandled bags onto the next available flight without manual intervention.

In 2023, Lufthansa partnered with SITA to launch the WorldTracer Auto Reflight system, a fully automated solution designed to digitally reroute mishandled baggage without human intervention. This system utilises the original bag tag to identify and assign the most suitable flight for the bag, streamlining the repatriation process and reducing the need for additional paper tags.

By the end of its first year of implementation at Munich Airport, the system was reportedly able to automatically reflight up to 70% of mishandled bags. This innovation not only enhances operational efficiency but also improves the passenger experience by ensuring quicker reunification with their luggage.

SITA has estimated that widespread adoption of this technology could save the industry up to $30 million annually in costs associated with mishandled baggage. Standardising License Plate Numbers (LPNs)—the 10-digit identifiers for each bag—is another crucial step, helping align systems across the entire ecosystem for faster, more accurate claims processing. IATA continues to advance this system so tracking systems across airlines and airports speak the same language.

These advances aren’t just about efficiency—they’re about trust. In an era of record air travel, passengers expect their bags to arrive as reliably as they do. Fast, accurate handling isn’t just a back-end function anymore; it’s a core part of the passenger experience.

In addition to all of that, modern baggage handling faces dual challenges: it must be both scalable to meet fluctuating passenger volumes and sustainable to reduce environmental impact. Many airports are addressing this by investing in energy-efficient conveyor belts that lower their carbon footprint without sacrificing performance. Equally crucial is scalability—airports need modular systems that can quickly adjust capacity in response to peak demand without costly, time-consuming upgrades.

A prime example is Paris Charles de Gaulle Airport’s new baggage handling system, introduced ahead of the 2024 Olympics. This includes a dedicated 10,000-square-metre “baggage factory” designed specifically to process the surge in luggage and sports equipment. By combining automation, advanced tracking, and a flexible layout, the facility exemplifies how modern airports can efficiently handle exceptional volumes while maintaining reliability and sustainability. This case underscores the importance of forward-thinking baggage solutions in keeping pace with evolving industry demands and major global events.

The aviation industry’s ability to adapt to rising passenger numbers hinges on how well it reinvents baggage handling. From API-driven messaging and RFID tracking to AI-powered automation and sustainable infrastructure, the sector is undergoing a quiet revolution. These innovations are not just improving operational efficiency—they’re reshaping the passenger journey, reducing stress, and restoring confidence. As global air travel continues to scale up, baggage systems must be ready to meet the challenge—faster, smarter, and more connected than ever.